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THINCATS – FIND THE GAP AND LOOK TO THE FUTURE

By Chris Eddowes

As a further entry in the series of blogs focusing on the presenters at our upcoming ‘Finance in’ events, our focus in this instalment turns to ThinCats.

£400m of debt advanced to over 500 UK businesses

Having recently celebrated breaking the £400m mark providing funding to over 500 UK businesses, ThinCats has certainly found its place in the alternative finance market place.

Funding to SMEs from £250k up to £15m through a variety of debt solutions is on offer for:

  • Funding growth – working capital, asset/property purchases and expansion
  • MBOs / MBIs
  • Acquisitions
  • Refinancing and restructuring

Whilst the headline rates, funding ranges and finance solutions are not dissimilar to other alternative finance providers at first view, their approach and appetite for certain situations can be seen as a differentiator.

In addition, ThinCats have also been in the news recently having launched a £100m SME funding scheme for private equity backed UK businesses, with the aim of helping such companies fund deals of up to £15m – more on that in a future blog, maybe.

Risk modelling and relationship based approach

Placing a stronger emphasis on future growth potential rather than lending criteria focused on historical performance, ThinCats presents an option for businesses who might otherwise have been rejected by their relationship bank or other alternative finance providers, particularly in the funding of a business transaction. Two aspects of note:

  • Indicative interest rates (from 5%) are determined based on the strength of the credit rating and security on offer, while the use of their “award winning” PRISM data models analyse SME data to gauge business growth potential and appetite for lending. As the ThinCats head of analytics Rolf Hickmann is quoted as saying: “By analysing thousands of businesses over more than 25 years, our PRISM Risk model shows that growing companies are of a higher credit quality than traditional lenders generally realise”.
  • The team of professionals allows ThinCats to provide a bespoke, relationship driven approach, filling the gap left by the traditional clearing banks and some of the more ‘automated’ alternative finance providers.

ThinCats news and PKF Francis Clark

From its headquarters in Winchester, Crondall Energy, a leading oil and gas consultancy firm has completed a partial management buy out (MBO) with a new funding facility from ThinCats. This has left Crondall Energy well placed to take advantage of expansion opportunities in the market place. 

My colleague, Corporate Finance Associate Chris Potts, commented “With the partial MBO completed, Crondall Energy is perfectly positioned to expand with the uptick in the market. We assessed the needs and aspirations of both the business and key stakeholders before recommending suitable transaction structures. We then considered a wide variety of funding options, including both debt and equity providers, and concluded that ThinCats was one of the most suitable funders for the particular circumstances of this transaction”.

Finance in Cornwall 2019

ThinCats will be presenting at ‘Finance in Cornwall’ 2019 – for more details of the event and to book a place please click here.

In the interim, please contact me or your usual PKF Francis Clark contact to discuss a debt raise that you feel may be suited to ThinCats.

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